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SIDC PrepStudyingModule 6
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Investment advice and corporate finance
Module 12Investment Management and Corporate FinanceModule 7 · Topic 6
Module 7's Section 3 (up to 30% of the paper, shared with equities and ETFs) tests charts and indicators: reading bar and candlestick charts, support and resistance, volume and open position, and calculating and interpreting RSI, moving averages, MACD and rate of change. Questions are short: a reading or a few closing prices, then one interpretation or calculation.
4 min read5 sections
Checked against SIDC Module 7 Study Outline (Jul–Dec 2026) Topic 6; J. J. Murphy, Technical Analysis of the Financial Markets (1999); J. W. Wilder, New Concepts in Technical Trading Systems (1978); S. Nison, Japanese Candlestick Charting Techniques (2001). As at October 2026. Independent prep, not endorsed by SIDC or the SC.
A daily bar runs from the session low to the high; the left tick is the open and the right tick the close. A candlestick shows the same four prices: the real body spans open to close (white or hollow when the close is higher, black or filled when lower) and the shadows reach the high and the low.
| Pattern | Shape | Read as |
|---|---|---|
| Hammer | Small body at the top, lower shadow at least twice the body, after a decline | Possible bullish reversal |
| Hanging man | Same shape after an advance | Bearish warning |
| Shooting star | Small body near the low, long upper shadow, after an advance | Bearish warning |
| Doji | Open and close (almost) equal | Indecision; needs context |
| Bullish engulfing | White body wholly covering the prior black body | Bullish reversal |
Trap: naming a hammer or hanging man from its shape alone. The trend before it decides the name.
Takeaway: body = open to close; shadows = high and low; the prior trend names the pattern.
Every note. Every question. One pass.
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From ≈RM16.58/mo on the Until-you-pass pass (12 months)
Support is where buying has stopped declines; resistance is where selling has stopped advances. A level gains weight the more often it is tested, at round numbers, and when broken on heavy volume. An up trendline is drawn through rising lows.
Reversal patterns (head and shoulders, double and triple tops and bottoms) mark the end of a trend; continuation patterns (flags, pennants, most triangles) are pauses within it. The head-and-shoulders minimum target projects the head-to-neckline distance from the neckline.
Trap: assuming a level keeps its old role after a confirmed breakout. Role reversal is the rule.
Takeaway: support below, buyers; resistance above, sellers; once broken, they swap.